Estate plans are very important, and it is wise to draft one as early as possible. After all, you never know what the future holds or if you could pass away unexpectedly, so drafting an estate plan can give you and your family peace of mind.
However, as you age, your needs and desires for that estate plan may change. When should you review the plan and consider making updates?
Important life events
Naturally, you can choose to review your estate plan at a specific time. Some people do a biannual review, for example, so they are potentially making updates every two years. But another tactic is to look for important life events, such as:
- A serious injury or medical diagnosis
- The loss of a job or other changes to your income and employment
- Receiving an inheritance or otherwise acquiring wealth and assets
- Getting married or divorced
- Having a child
- The birth of a grandchild
- The death of a previous beneficiary named in your estate plan
- One of your beneficiaries getting married or divorced
- Significant changes to tax laws or estate planning laws in your state or at the federal level
- Selling a business or a home
- Giving away assets in advance, such as financial gifts or real estate, to adult children or other descendants
Essentially, you just want to consider how the changes in your life may also affect your estate plan and necessitate changes to that plan. In this sense, you can make updates at any time, whenever they are necessary and beneficial. Just be sure you know exactly what legal steps to take to do so.
